Dangling a carat: Gold shines brighter this festive season even as battle rages in Gaza

Kolkata: Gold is shining brighter this festive season even as battle rages in Gaza, threatening to spill over West Asian borders. Despite prices of the yellow metal moving up by 5.5% since outbreak of the Israel-Palestine conflict, sales have surged by up to 30% during Dussehra-Navratri from the year earlier, said leading jewellers such as Malabar Gold & Diamonds, PNG Jewellers and Senco Gold & Diamonds.

Silver has been riding high since ‘adhik maas’ (July-August) and that trend continues.

Gold prices, which stood at ₹57,415 per 10 gm before the attacks by Hamas, have shot up to ₹60,612 in the past fortnight. “The upward trend has been visible since the month of Shraadh,” said Saurabh Gadgil, managing director of PNG Jewellers.

“It has moved into high gear since the beginning of Navratri. We expect a 30% increase in sales compared to the previous Dussehra,” said Gadgil of PNG Jewellers, which has 42 stores in Maharashtra and Goa.

There are purchases across categories, but especially in necklaces, bangles and heavy wedding jewellery, Gadgil said.

Titan’s jewellery division reported a 19% on-year rise in sales in July-September. In its report for the quarter, the company attributed “healthy wedding and high-value studded purchases,” among others, as key growth drivers. Sales of CaratLane, in which Titan has a 98.3% stake, surged 45% on-year during the same period.More than 3.5 million weddings are expected from now till the end of March 2024. Gold sales are also on a tear because people are buying in anticipation of a further increase in prices if the Gaza troubles spread.

Kerala-headquartered Malabar Gold, which has a pan-India presence, said Dussehra has set the tone for robust jewellery sales during Dhanteras and Diwali. “Sales have increased by 18% during Dussehra this year, compared to last year, on the back of strong consumer demand and our steady retail expansion,” said MP Ahammed, chairman of Malabar Gold.

In price-sensitive eastern India, Senco has seen 10-15% growth in gold jewellery sales from the previous Dussehra. “Sales of diamond jewellery have increased by 20%,” said Suvankar Sen, managing director of Senco.

Bullion dealers said investment and physical retail demand are also back, supporting prices.

“The fundamental and technical landscape for gold has improved, with a long-term bullish view,” said Prithviraj Kothari, managing director of RiddiSiddhi Bullions. “I expect prices to trade at least 10% higher from current levels by next year. So, an auspicious day like Dussehra is the best time to buy gold, and we have seen that trend among people.”